It is all about liquidity - risk weakness ahead

Latest view summary via the king of macro and liquidity, Citi's Matt King: 1. The risk rally this year is driven by obscure technicals related to central bank liquidity, specifically declines in government deposits at the ECB and surges in reserves at the BoJ and PBOC. 2. The collective addition of more than $1tn in liquidity since October has attracted attention, but most of the boost to reserves is likely done. 3. The rest of the year is expected to return to being a story of liquidity drainage and risk weakness, rather than further central bank interventions.